microcredit and it s failure

The reading passage is providing an outline about the experiment carried by Muhammad Yunus who was an economist. On the contrary the lecture dscribes the causes of the unsuccefulness associated with microcredit.

First of all, although the lecture supports the idea from the passage that it is a good process to help the poor people for starting a business, yet it is not successful for eliminating poverty because 200 countries need the microcredit whereas only 50 countries are able to have this facility.

Secondly, the professor adds further information about the failure of the microcredit by pointing out that many poor people are physically and mentally not able to be productive . Hence, the loan is not useful for them to invest for the production.

Finally, she emphasizes that it is more necessary to invest on health care, sanitation and microcredit as well , as a result they can be productive. The lecture further adds to the funding of the microcredit so that the cost of the microcredit could be free for the poor people because it is offering low cost but not free.